LONDON (Reuters) – British engine-maker Rolls-Royce forecast more growth and lifted its mid-term targets after it beat guidance for 2024, posting a 55% rise in annual profit as widebody jets flew more and its cost-saving plan delivered.
The group also announced a dividend of 6 pence per share for 2024, having flagged last August that it would reinstate the payout after a five year break sparked by the pandemic, and said it would start a 1 billion pound ($1.27 billion) share buyback.
The confident outlook showed the progress made by Rolls over the last two years after chief executive Tufan Erginbilgic joined the company promising to turn it around.
“Strong 2024 results build on our progress last year, as we transform Rolls-Royce into a high-performing, competitive, resilient, and growing business,” Erginbilgic said.
Rolls, Airbus’s exclusive engine partner on its widebody planes and a supplier to Boeing’s 787, said on Thursday it would meet its previous mid-term targets this year, two years earlier than planned, and as such was now guiding to mid-term underlying operating profit of 3.6 billion pounds to 3.9 billion pounds.
For 2024, it reported underlying operating profit of 2.46 billion pounds, beating a consensus forecast of 2.287 billion pounds.
($1 = 0.7900 pounds)
(Reporting by Sarah Young, Editing by Paul Sandle)
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